GST Reforms Set to Boost Tourism, Jobs, and Investment in India
The latest goods and services tax (GST) reforms are aimed at strengthening India’s hospitality, transport, and cultural sectors. According to the Centre, the reduced tax on hotel stays and bus travel is intended to make tourism more affordable, encourage investment, and create employment opportunities.
Impact on Tourism
The Ministry of Social Welfare highlighted that the GST revisions are a strategic effort to make travel and cultural experiences more accessible. These measures are expected to enhance domestic tourism, support artisans and cultural industries, and promote investment in the broader tourism ecosystem.
Tourism Recovery and Growth
India has witnessed a strong resurgence in foreign tourist arrivals, rising from 15.27 lakh in 2021 to 99.52 lakh in 2024. This growth reflects a post-pandemic revival in international travel and growing interest in India as a destination. By lowering travel and accommodation costs, the government aims to further boost both domestic and international tourist inflows, strengthening the country’s tourism sector and related industries